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  • Internal Analysis Apple

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    kapuriasonu
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    Carpenter and Sanders (2009) define a company's internal environment as its internal resources and capabilities that provide the core competencies to achieve competitive advantage and above-average returns. The document analyzes Apple's internal environment using the VRIO framework. It finds that Apple's sustained competitive advantages come from its brands, innovation, and customer loyalty. These resources are valuable, rare, imperfectly imitable, and the company is organized to capture value from them. Logistics and design capabilities only provide competitive parity, while digital rights management provides no advantage.

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    Carpenter and Sanders (2009) define a company's internal environment as its internal resources and capabilities that provide the core competencies to achieve competitive advantage and above-average returns. The document analyzes Apple's internal environment using the VRIO framework. It finds that Apple's sustained competitive advantages come from its brands, innovation, and customer loyalty. These resources are valuable, rare, imperfectly imitable, and the company is organized to capture value from them. Logistics and design capabilities only provide competitive parity, while digital rights management provides no advantage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    13K views1 page

    Internal Analysis Apple

    Uploaded by

    kapuriasonu
    Carpenter and Sanders (2009) define a company's internal environment as its internal resources and capabilities that provide the core competencies to achieve competitive advantage and above-average returns. The document analyzes Apple's internal environment using the VRIO framework. It finds that Apple's sustained competitive advantages come from its brands, innovation, and customer loyalty. These resources are valuable, rare, imperfectly imitable, and the company is organized to capture value from them. Logistics and design capabilities only provide competitive parity, while digital rights management provides no advantage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 1

    Carpenter and Sanders (2009) define internal environment as the company’s internal

    resources and capabilities activities, which give the core competencies for the
    company to achieve the competitive advantage and earn above average return.

    Resources and capabilities V R I O Competitive Advantage

    Brand/name √ √ √ √ Sustained

    Logistics √ × × √ Competitive Parity

    Design/ Product √ × × √ Competitive Parity

    Innovation √ √ √ √ Sustained

    DRM √ × × × No Competitive
    advantage

    Customer Loyalty √ √ √ √ Sustained

    The VRIO analysis shows that Apple’s competitive advantage is achieved mostly
    through its brand, innovation and customer loyalty, as well as combinations of the
    three. The Apple and iTunes brands are both well respected and trusted by customers.
    Apple’s innovation with ITunes and iPod , iPhone combination is another important
    factor; an innovative product, combined with a user friendly, all encompassing service
    covering both a means to keep and organize music on one’s computer as well as to
    purchase new music easily (i.e through e-logistics). Finally through their innovation
    and name, as well as clever combination of hardware and integrated software, Apple
    has been able to create a competitive advantage for itself through customer loyalty.
    Logistics (i.e. the means by which consumers are able to purchase music directly onto
    their computers), while innovation, is neither rare, nor inimitable resource or
    capability for Apple. For similar reasons, the design of iTunes as a product bestows
    them only with competitive parity, rather than sustainable competitive advantage.
    DRM, on the other end of the scale can be seen as a valuable to Apple and the music
    industry to the extent to which it works (until someone hacks it), however, as is
    shown by the case, is not a rare capability, is highly imitable, and is not organized in a
    way that would provide sustainable mitigation of the problem it is trying to solve.

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